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Amazon's Leadership Crisis and Recovery

The document discusses the leadership failures at Amazon under Jeff Bezos, highlighting a toxic workplace culture characterized by extreme productivity demands and worker injuries. Following Andy Jassy's takeover in 2021, the company shifted towards a more empathetic and inclusive leadership style, improving employee conditions and morale. The case illustrates the importance of treating employees well for sustainable success in organizations.

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0% found this document useful (0 votes)
67 views8 pages

Amazon's Leadership Crisis and Recovery

The document discusses the leadership failures at Amazon under Jeff Bezos, highlighting a toxic workplace culture characterized by extreme productivity demands and worker injuries. Following Andy Jassy's takeover in 2021, the company shifted towards a more empathetic and inclusive leadership style, improving employee conditions and morale. The case illustrates the importance of treating employees well for sustainable success in organizations.

Uploaded by

itzshiri
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

INDIVIDUAL ASSIGNMENT

MGT255 – Management and Organizational Behavior

Title:

Leadership Failure and Recovery: The Case of Amazon

Submitted to: Dr. Moosa Al Murawwi

by: Shirina Abufarah 1100065

Introduction

founded in 1994 amazon started as an online bookstore and grew to become one of the largest
tech and e commerce companies in the world. Its known globally for fast shipping services cloud
computing through aws and innovations in artificial intelligence and automation. the company
has over 1.5 million employees and a presence in every continent (forbes, 2024). while amazons
external reputation remained strong its internal workplace culture faced increasing criticism over
time. warehouse injuries extreme productivity targets and toxic management strategies revealed a
darker side of its operations

i picked amazon because it is everywhere and everyone uses it, but few know how it really runs
inside. it is fast cheap and ultra successful but behind that there is a tough reality. warehouse
workers walking miles everyday scanning hundreds of items delivery drivers working long hours
with barely any breaks and salaries that do not match their effort. leadership pushed hard for
speed and numbers often ignoring the people making it all happen. according to a 2024 report by
the senate HELP committee amazon had about 45 injuries per 100 workers during peak times
half the workforce injures showing how dangerous it got this case is perfect example of how
leadership focused too much on profit and efficiency also because i wanted to understand how
leadership led to these problems what it was like for the workers and how things slowly changed
while ignoring worker wellbeing. amazons approach especially under jeff bezos faced backlash
for his harsh work culture that created conflict fear and burnout (oxfam, 2023). however, after
Bezos stepped down in 2021 Andy Jessy took over and started shifting leadership priorities.

Leadership Style That Led to the Crisis


jeff bezos built amazon into a global empire focused on growth control and speed. he set a
culture that measured every second of worker time. workers said they felt timed like machines
and scared to take bathroom breaks for fear of write ups warehouse staff walked over 7 miles a
shift, scanned hundreds of items per hour and worked in brutal heat some passed out and were
ignored.

delivery drivers hired under strict quotas sometimes handled over 400 stops a day. they skipped
meals and even peed in bottles to stay on schedule this pressure led to anxiety depression burnout
and injuries. oxfam’s survey showed 53 percent of warehouse workers felt constantly monitored
and 56 percent experienced anxiety or depression recently one said “i left amazon because my
body couldn’t handle it anymore” . this shows leadership that chases profit without care ends up
harming its own people

according to business insider, amazon warehouses reported injury rates twice as high as industry
averages. during peak seasons like prime day nearly 45 out of 100 workers were reported to be
injured (business insider, 2024). the focus on nonstop productivity and constant data tracking
created a toxic culture. leaders failed to use empathy or support systems. this caused workers to
feel dehumanized and caused high losses in the corporate office.

instead of creating sustainable growth the leadership approach built resentment and fear. workers
numbers pushed people to break instead of grow. media and union pressure exposed systemic
issues. This proves that it was a problem with leadership values and culture and not just goals
and that they needed a huge shift in leadership style.

references for this section:

oxfam america (2023). is amazon a good place to work?

senate help committee (2024). amazon worker injury report

business insider (2024). amazon prime day worker injury rates

harvard business review (2025). internal culture and stack ranking

Organizational Factors Causing Political Behavior

amazon’s workplace culture and structure created a system that encouraged political behavior
especially among managers. the use of ranking systems like the office also reported that they
used a stack ranking system where employees were ranked yearly and only top performers kept
jobs. this created fear and toxic competition. one manager said people hid mistakes instead of
fixing them to avoid looking weak. instead of teamwork workers became rivals trying to survive.
managers had a lot of power and played favorites. if you were close to a manager you were safe
if not you had to constantly prove yourself. workers were scared to speak up about unfair
treatment because it might cost their jobs. one employee said the culture felt like a pressure
cooker ready to explode with stress and silence. it was not just tough goals it was a culture that
punished weakness and ignored respect and teamwork (hbr, 2025).

the companys matrix structure gave authority to multiple leaders across different departments.
this led to confusion over responsibilities and accountability power was often used informally
and based on personal influence or closeness with senior leaders. one investigation reported that
middle managers used their power to pressure workers into overtime and didn’t support medical
leave (reuters, 2023)

these power imbalances created a political culture where job security depended more on manager
relationships than fair evaluation. employees began forming informal alliances to protect
themselves from layoffs. leadership failed to build trusted systems that would prevent this
conflict. instead the structure caused fear and mistrust across teams

references for this section:

forbes (2024). toxic management systems in big tech

reuters (2023). amazon workplace injury cover-ups and pressure from managers

how Amazon Attempted to bring Itself back up

in 2021 jeff bezos stepped down and andy jassy took over as ceo. jassy was previously the head
of aws and had a reputation for calm communication and strategic thinking. his leadership style
was more transformational and participative. one of the first changes he made was increasing
amazons minimum wage to $15 per hour and improving benefits like paid parental leave and
mental health resources (about amazon, 2022)

jassy also introduced new leadership principles including being “earth’s best employer” and
promoting a safer and more inclusive workplace. performance review systems were restructured
to include feedback on collaboration, empathy, and leadership not just productivity (business
insider, 2025)
to improve transparency jassy reduced unnecessary management layers and encouraged open
forums where warehouse workers could report issues directly. this gave more power to
employees and reduced the influence of toxic middle managers. amazon also launched leadership
training to improve emotional intelligence and people management (linkedin, 2024)

besides these big moves jassy encouraged more transparency and accountability at all levels. he
pushed managers to be more understanding and less focused on just hitting targets. training
programs were introduced to help leaders improve soft skills like empathy communication and
coaching. these programs helped change the way teams worked together and made leadership
more approachable.

additionally amazon invested in automation and robotics to reduce the physical strain on
warehouse workers. wearable devices were updated to give workers more break time and protect
them from overexertion. while not perfect, these actions showed a clear effort to rebuild worker
trust and safety

references for this section:

about amazon (2022). new leadership principles

business insider (2025). performance review reform

linkedin (2024). andy jassy leadership vision for amazon

New Leadership Style That Was Effective

andy jassy applied transformational leadership where he inspired teams through values and a
long term vision instead just pushing for numbers he focused on changing company culture over
time and reduced fear of speaking up and control. he used referent power by building trust
through clear communication and empathy. he also relied on expert power through his strong
track record at aws. jassy didn’t try to control employees through monitoring systems. instead he
empowered them by giving more voice and reducing layers of authority

andy also used reward power by raising wages giving bonuses and promoting people who
showed respect and leadership. performance reviews changed to value how employees treated
others not just how fast they worked. this sent a message culture and values mattered. under his
leadership fear decreased morale improved and teams started to work better. workers felt safer to
speak up and trusted leaders more. amazon became less of a pressure cooker and more of a place
people could stay and grow.

according to harvard business review, jassy’s team introduced coaching-style leadership that
focused on listening, mentoring, and supporting talent across levels (hbr, 2025). this shift
improved workplace morale especially among younger employees who demanded better
treatment. managers were trained to handle team conflict without using threats or fear

amazon also began recognizing employee contributions through reward programs, internal
promotions, and employee recognition platforms. this helped move away from fear-based culture
to one that valued performance with respect. the organizational structure became more agile and
responsive to feedback

while amazon still faces challenges the new leadership style under jassy created visible positive
change in employee engagement and retention. workplace injury rates declined and employee
satisfaction scores improved in internal surveys by 2024 (about amazon, 2024)

references for this section:

harvard business review (2025). coaching leadership at amazon

about amazon (2024). employee satisfaction and culture metrics

forms of power used to make change happen

when andy jassy stepped in he didn’t just bring new ideas he used power in smarter ways. first he
had legit power just by being the ceo so that gave him control to shift the whole company’s
direction. but he didn’t just rely on the title. he also had expert power since he came from aws
and already proved he knew how to lead and build things that work. people respected that
the real difference was how he used referent power. workers trusted him because he was
consistent respectful and clear. he didn’t act like he was above everyone. he sent out internal
updates emails q&a videos all in a calm way that made people feel like they were actually being
spoken to not ordered around (linkedin, 2024)

he also used reward power in a good way. better pay bonuses wellness programs and mental
health support all helped people feel more motivated. it wasn’t just do your job or else like
before. now it felt like if you do well you’ll be seen and appreciated

and maybe one of the biggest things was information power. jassy gave more tools to workers
especially in warehouses. they got access to training new tech and better scheduling so they
could manage their own work better instead of being watched every second. that freedom made a
big difference

all these powers worked together. it wasn’t about fear or pressure. it was about letting people be
part of the change when workers feel included and trusted they work better and that is exactly
what helped rebuild the culture and slowly bring trust back into the company

references for this section:

linkedin (2024). andy jassy leadership communication methods

about amazon (2023). employee empowerment tools

Conclusion and how other companies could learn

Amazons story really shows how leadership can either build a strong company or ruin it from
the inside. jeff bezos made amazon into one of the biggest names in the world but the way he ran
things caused stress fear and anxiety for so many workers. the focus was all on speed numbers
and growth. but behind the scenes people were breaking down. the company kept winning on the
outside but was falling apart inside. eventually the public started noticing and the pressure got
real protests media attention and government investigations forced amazon to wake up
when andy jassy took over things started to shift. he brought a more human way of leading. it
was not about results anymore it was about people too. he added empathy communication and
long term thinking. slowly the culture started to change. people felt more respected safer and
more heard. it was not perfect, but it was a real step forward

this whole thing shows that success isn’t about how fast you grow or how much money you
make. it is about how you treat your people along the way. leaders who care about respect safety
and honest communication are the ones who build companies that last

References

about amazon. (2022). amazon introduces new leadership principles.


[Link]
video-podcast

about amazon. (2023). employee empowerment and digital tools.


[Link]
workers

about amazon. (2024). internal employee satisfaction scores.


[Link]

business insider. (2024). amazon prime day injury rates.


[Link]
senate-report-2024-7

business insider. (2025). new employee evaluation model.


[Link]
principles-2025-7
forbes. (2024). big tech workplace politics.
[Link]

harvard business review. (2025). coaching leadership inside amazon.


[Link]
role-of-managers

linkedin. (2024). how andy jassy uses leadership to build trust.


[Link]

oxfam america. (2023). is amazon a good place to work?


[Link]

reuters. (2023). workplace abuse and hidden pressure in amazon warehouses.


[Link]

senate help committee. (2024). investigation into amazon workplace injuries.


[Link]

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